NEW YORK TIMES CO

17. Leases

Lessee activities

Operating leases

We have operating leases for office space and equipment. For all leases, a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, are recognized in the Consolidated Balance Sheet as of December 31, 2023, as described below.

The table below presents the lease-related assets and liabilities recorded on the balance sheet:

P. 114 – THE NEW YORK TIMES COMPANY

The total lease cost for operating leases included in operating costs in our Consolidated Statement of Operations was as follows:

The table below presents additional information regarding operating leases:

Maturities of lease liabilities on an annual basis for the Company’s operating leases as of December 31, 2023, were as follows:

In June 2023, we ceased using certain leased office space in Long Island City, New York. As a result, we recorded non-cash impairment charges of $7.6 million and $5.1 million to the right-of-use assets and fixed assets, respectively. The impairment amount was determined by comparing the fair value of the impacted asset group to its carrying value as of the measurement date, as required by ASC 360, Property, Plant and Equipment. The fair value of the asset group was based on estimated sublease income for the affected property, taking into consideration the time we expect it will take to obtain a sublease tenant and the expected applicable discount rates. The impairment is presented in Impairment charges in our Consolidated Statements of Operations within the New York Times Group operating segment.

Lessor activities

Our leases to third parties predominantly relate to office space in the Company Headquarters.

As of December 31, 2023, and December 31, 2022, the cost and accumulated depreciation related to the Company Headquarters included in Property, plant and equipment in our Consolidated Balance Sheet was approximately $518 million and $277 million, and $522 million and $258 million, respectively. Office space leased to third parties represents approximately 36% of gross square feet of the Company Headquarters.

THE NEW YORK TIMES COMPANY – P. 115

On December 9, 2020, we entered into an agreement to lease and subsequently sell approximately four acres of land at our printing and distribution facility in College Point, N.Y., subject to certain conditions. The lease commenced on April 11, 2022. At the time of the lease expiration in February 2025, we will sell the parcel to the lessee for approximately $36 million. The transaction is accounted for as a sales-type lease and as a result, we recognized a gain of approximately $34 million (net of commissions) at the time of lease commencement, and recorded a lease receivable of approximately $36 million in Miscellaneous assetsin our Consolidated Balance Sheet as of December 31, 2022. The payments associated with the lease are recorded in Interest income and other, net in our Consolidated Statements of Operations.

We generate building rental revenue from the floors in the Company Headquarters that we lease to third parties. The building rental revenue was as follows:

Maturities of lease payments to be received on an annual basis for the Company’s office space operating leases as of December 31, 2023, were as follows:

P. 116 – THE NEW YORK TIMES COMPANY